Bengaluru leads in entry-level jobs, start-up funding, AI growth and women-friendly cities: Report

Even as Hyderabad leads on liveability, Bengaluru remains at the centre of India’s jobs and innovation ecosystem.

Among Indian cities, Bengaluru continues to dominate the employment landscape, leading in entry-level jobs, employability, start-up funding and women’s inclusion in workplaces, according to the ‘WeAreCity 2026’ report.

The report points to several key trends among India’s Tier-1 cities. While Delhi NCR and Mumbai remain ahead in overall economic heft, and Hyderabad performs strongly on liveability index, Bengaluru stands out as the country’s primary hub for jobs, talent and innovation, driven by the scale and quality of opportunities it offers.

Bengaluru leads in entry-level job distribution

For young graduates entering the workforce, Bengaluru leads entry-level hiring across sectors, emerging as the top city for junior-level jobs (0-5 years experience) among India’s tier-I cities.

In IT alone, Bengaluru accounts for 34.6 per cent of entry-level jobs, the highest among all cities, with Hyderabad at 15.9 per cent. 

The city also leads across other sectors, contributing 28.9 per cent in manufacturing and automotive, 27.7 per cent in BFSI, 25.3 per cent in pharma and healthcare, 32.1 per cent in retail, FMCG and FMCD, and 19.9 per cent in energy and utilities.

Across all six sectors analysed, Bengaluru ranks first, underlining its position as the largest entry point for young professionals in India.

At a broader level, when combined with Hyderabad, the two cities account for a disproportionately high share of entry-level jobs, outpacing Delhi NCR and Mumbai across most sectors. The report notes that they together contribute 40–50 per cent of hiring in the 0-5 years bracket, signalling a clear shift in where early careers are now concentrated.

In employability as well, Bengaluru ranked second next to Pune. In several sub-segments, however, it ranked first, notably in the 18–21 years group, women’s employability, English as a second language, numerical skills, critical thinking and computer skills.

Start-ups: Delhi leads in volume, Bengaluru in funding

The report highlights a clear divide in India’s start-up ecosystem. While Delhi NCR is seeing a higher number of start-ups being formed, Bengaluru continues to dominate in funding and venture capital support.

Between 2020 and 2024, 10,722 start-ups were founded in Delhi NCR, compared to 6,921 in Bengaluru. However, when it comes to funding, the trend reverses. In Bengaluru, 1,004 start-ups received funding during this period, compared to 674 in Delhi NCR.

In effect, Bengaluru saw fewer start-ups being created, but significantly more of them getting funded, indicating stronger investor confidence and higher-quality ventures.

Lead in AI and future technologies

In AI and advanced tech domains, Bengaluru remains to be at the forefront for both number of start-ups and investment.

The report shows that Bengaluru leads in six out of seven high-end tech skill areas based on LinkedIn job listings, including blockchain, cloud computing, cybersecurity, natural language processing, quantum computing and robotics. In artificial intelligence, it ranks a close second to Delhi NCR, indicating strong depth across emerging tech roles.

Between 2020 and 2024, Bengaluru accounted for 52 native AI start-ups funded, more than all other cities combined. In comparison, Delhi NCR had 18 such start-ups, while Mumbai had 11.

In terms of capital, Bengaluru-based AI start-ups raised $224.1 million, far ahead of Delhi NCR’s $36.9 million

Global standing in startup ecosystem

In the last decade, Bengaluru has significantly improved its positioning in the global forefront. In 2024, it was ranked 14th among the world’s top start-up ecosystems, moving up six places since 2023 and entering the top 15 for the first time.

The report shows that the city benefits from a strong STEM talent base and relatively lower costs compared to global peers, making it attractive for start-ups and investors alike.

At the same time, there are gaps. Bengaluru scores lower on intellectual property creation and commercialisation, as well as in specialised sectors like life sciences. The report notes that while the city has scale in talent and start-ups, the depth in advanced research and IP-driven innovation is still evolving.

Women-friendly city

On workforce inclusion, Bengaluru emerges as the most women-friendly city among major metros, while Hyderabad is placed fourth, according to the report.

The data shows that Bengaluru performs better in skilling and employment opportunities, scoring 7.54 compared to Hyderabad’s 6.95, highlighting its strength as a job-driven ecosystem. Hyderabad, however, scores slightly higher on infrastructure and safety, while both cities are closely matched on caregiving support and quality of life.

New company formation rises sharply

Startup and company formation trends also reflect how the ecosystem is evolving. While Bengaluru remains ahead, Hyderabad is quickly emerging as a competing business hub.

According to the report, Bengaluru and Hyderabad together accounted for about 15 per cent of new companies formed across the top eight cities a decade ago. This share has now risen to 25 per cent in 2024–25, indicating growing entrepreneurial activity in these hubs.

While Bengaluru surged ahead in the earlier years, the gap has narrowed more recently. In fact, Hyderabad has now nearly matched Bengaluru in new company formation in 2024–25, with around 10,813 companies in Hyderabad compared to 11,261 in Bengaluru.